Small businesses will suffer if the governments plans to scrap the retirement age go ahead. The government plan to phase out the retirement age of 65 by 2011. This could cause problems for businesses wanting to shed employees in a bid to cut costs by “natural” turn around, this mainly dependant of employees leaving businesses for pastures new and of course retirement.

The public sector are planning on using this as one way of saving money in the governments planned cuts and private businesses with fewer employees could really feel the pinch in declining industries.

Businesses and employees alike the changes do not feel like a good thing and will no doubt hamper the push on incentive to hire apprentices. As usual it is likely the small business will suffer while banks are still in the news for being reluctant to lend to small and new businesses.

Many business groups deny that they oppose the retirement age rising, but would like the government to go further than just a code of practice to address the issues linked to the change in law.

Small business web designers Easybiz Sites believe that some industries where small businesses are feeling the pinch will have to now hope that something is done about banks business lending and may only have the redundancy route to take if new laws that impact businesses are not implemented with safeguards for them.